On Thursday morning, the Trump administration announced that it would impose steep tariffs on steel and aluminum from the EU, Canada, and Mexico. It’s the latest expansion of President Trump’s tough trade policy, which already involves tariffs on Chinese products. And the EU is gearing up to respond with its own tariffs on American products, including Harley Davidson motorcycles and Kentucky bourbon, per this tweet:

It’s a bad day for world trade. US leaves us no choice but to proceed with a WTO dispute settlement case and the imposition of additional duties on a number of US imports. We will defend the EU’s interests, in full compliance with international trade law. https://t.co/J3wPW5Ew7Kpic.twitter.com/aDlOWcSgRv